Kddl Limited · NSE:KDDL
Kddl — Q3 FY19 Earnings Presentation
33 slides from Kddl's earnings presentation, Feb 13, 2019
Slide 1: KDDL Limited & ETHOS Limited Result Update Presentation
KDDL Limited & ETHOS Limited Result Update Presentation February 2019 Q3 & 9M FY19
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which has been prepared by KDDL Limited and Ethos Limited, a subsidiary of KDDL Limited, (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subsc
Slide 3: Our Performance
z . DW Our Performance
Slide 4: Business Momentum continues
Business Momentum continues Consolidated Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT After MI (Rs. Cr) +30% +71% +80% 474.0 51.3 19.7 365.5 30.0 10.9 9MFY18 9MFY19 9MFY18 9MFY19 9MFY18 9MFY19 Standalone Revenue (Rs. Cr) EBITDA (Rs. Cr) PAT (Rs. Cr) +20% +15.1% +14% 130.6 23.7 11.6 108.8 20.6 10.2 9MFY18 9M
Slide 5: Performance snapshot
Performance snapshot Manufacturing Highlights Strong revenue growth at 20% on YoY basis for Q3FY19 and 9MFY19, PAT was impacted in Q3FY19 on account 1 of higher investments in Employees in view of future growth that the Business envisages 2 Commenced the operations for our precision Engineering unit
Slide 6: Profit & Loss
Profit & Loss Consolidated Standalone Rs. Crs 9MFY19 9MFY18 YoY% 9MFY19 9MFY18 YoY% Revenue 474.0 365.5 30% 130.6 108.8 20% Cost of Goods Sold 278.5 221.4 31.1 26.4 Gross Profit 195.5 144.1 36% 99.5 82.4 21% Employee Expenses 61.7 48.4 38.4 31.1 Other Expenses 82.6 65.6 37.4 30.7 EBITDA 51.3 30.0 71
Slide 7: Balance Sheet
Balance Sheet Consolidated Standalone Rs. Crs Sep-18 Mar-18 Sep-18 Mar-18 Shareholder’s Fund 205.8 161.6 159.7 130.3 Share Capital 11.3 11.0 11.3 11.0 Reserves & Surplus 157.8 121.0 148.4 119.3 Non Controlling Interest 36.6 29.7 - Non-current liabilities 60.9 49.4 41.0 35.4 Long Term borrowings 56.7
Slide 8: Acquired "Estima AG" in Switzerland
Acquired “Estima AG” in Switzerland About Estima AG Strategic Rationale ▪ Estima was established as a maker of watch ▪ Estima was a competitor of the Company in the hands in Switzerland in 1924 business of watch hands manufacturing ▪ It was a leading supplier to Swiss and other ▪ Has a well establis
Slide 9: New Store opening in Thane, Maharashtra
New Store opening in Thane, Maharashtra Opened a RADO Boutique at Viviana Mall in Thane, Maharashtra 9
Slide 10: Manufacturing Business Overview
Manufacturing Business Overview
Slide 11: Introduction - Watch Dials and Hands Business
Introduction - Watch Dials and Hands Business Watch Hands Value Watch Dials Proposition ▪ Commercial ▪ Deep Understanding ▪ Commercial operations operations began in of the Global Watch began in 1983 Industry ▪ Leading Global supplier 1996 of Watch Dial serving ▪ Only supplier in India ▪ Established
Slide 12: Introduction - Precision Engineering Business
Introduction - Precision Engineering Business Value Proposition Eigen offers a full package of services, ranging from design and development to full scale production, providing customers with optimized supply chain solutions Capabilities We address various segments such as Electrical, Electronics, A
Slide 13: Precision Engineering Expansion
Precision Engineering Expansion Investment Production Capabilities Invested Rs. 30 cr Injection Moulding, over 2 years. Electroplating, ~2 acre land at additional Stamping Bengaluru, capacity and Tool Karnataka Room upgrade Margins Clients Automobiles, Strong RFQs Defence, Hitech domestic & globally
Slide 14: Manufacturing – Profit & Loss
Manufacturing – Profit & Loss Particulars (Rs. Crores) Q3FY19 Q3FY18 YoY % 9MFY19 9MFY18 YoY% FY18 Revenue 42.3 35.4 20% 130.6 108.8 20% 145.8 Cost of Goods Sold 9.5 7.9 31.1 26.4 33.7 Gross Profit 32.8 27.4 20% 99.5 82.4 21% 112.2 Employee Expenses 13.1 10.1 38.4 31.1 42.7 Other Expenses 12.7 10.5
Slide 15: Stable Manufacturing Performance
Stable Manufacturing Performance Revenue (Rs. Crs) EBITDA (Rs. Crs) +6% 146 27 +11% 25 127 125 22 112 21 21 96 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 15
Slide 16: Ethos Overview & Performance
Ethos Overview & Performance
Slide 17: Strong Performance Continues
Strong Performance Continues 9MFY19 vs 9MFY18 Billings (Rs. Cr) Revenue (Rs. Cr) +28% +31% 392.4 340.3 307.6 260.4 9MFY18 9MFY19 9MFY18 9MFY19 Normalized EBITDA (Rs. Cr) PAT (Rs. Cr) +135% +558% 26.4 9.3 11.3 1.4 9MFY18 9MFY19 9MFY18 9MFY19 17
Slide 18: Ethos – Reconciliation to Normalised EBITDA
Ethos – Reconciliation to Normalised EBITDA Particulars (Rs. Crores) 9MFY19 9MFY18 Revenue 340.3 260.4 Cost of Goods Sold 247.7 200.2 Employee Expenses 21.7 16.6 Other Expenses 44.5 32.3 Normalized EBITDA 26.4 11.3 Normalized EBITDA % 7.8% 4.3% Forex Items 1.5 0.8 Credits written off - 0.6 Provision
Slide 19: Ethos – Profit & Loss
Ethos – Profit & Loss Particulars (Rs. Crores) Q3FY19 Q3FY18 YoY % 9MFY19 9MFY18 YoY % FY18 Revenue 128.7 107.1 20.1% 340.3 260.4 30.7% 357.7 Cost of Goods Sold 91.4 80.5 247.7 200.2 271.8 Gross Profit 37.3 26.7 92.6 60.2 86.0 Employee Expenses 7.4 5.9 21.7 16.6 22.6 Other Expenses# 16.3 9.5 46.9 33
Slide 20: Ethos - Balance Sheet as per IND-AS
Ethos - Balance Sheet as per IND-AS Rs. Crs Sep-18 Sep-17 Shareholder’s Fund 106 67 Share Capital 16 14 Reserves & Surplus 90 53 Non-current liabilities 13 13 Long Term borrowings 12 12 Long Term Provisions 2 1 Current liabilities 147 156 Short Term Borrowings 43 50 Trade Payables 81 90 Other Curren
Slide 21: Ethos - Performance Trend
Ethos - Performance Trend* Revenue (Rs. Crs) Front-end Rent & Manpower Cost as % of Revenue# +31% 340.3 12.0% 11.4% 11.3% 10.3% 9.8% 251.9 250.0 260.4 205.6 9MFY15 9MFY16 9MFY17 9MFY18 9MFY19 9MFY15 9MFY16 9MFY17 9MFY18 9MFY19 EBITDA (Rs. Crs) EBITDA Margin (%) +142% 24.0 7.0% 4.9% 4.2% 3.8% 10.1 10
Slide 22: Ethos - Online Sales Trend
Ethos - Online Sales Trend Online Billing (Rs. Crs) Online – as % of Total Billing +14% 31.0% 32.1% 112.6 29.0% 28.7% 98.8 87.2 22.8% 82.5 52.9 9MFY15 9MFY16 9MFY17 9MFY18 9MFY19 9MFY15 9MFY16 9MFY17 9MFY18 9MFY19 Visitors on website (‘000) +11% 10,888 9,783 7,464 5,701 4,224 9MFY15 9MFY16 9MFY17 9M
Slide 23: Ethos - Repeat Sales Trend
Ethos - Repeat Sales Trend Club ECHO – Member Base Repeat Billings (Rs. Crs) 208,936 135.0 184,891 154,357 91.4 54.4 52.0 Mar’17 Mar’18 Dec’18 9MFY16 9MFY17 9MFY18 9MFY19 23
Slide 24: Pan-India Presence with Offline Store Network
Pan-India Presence with Offline Store Network India’s Largest retail chain of Luxury Watches with 47 stores Ludhiana Chandigarh Presence across Metros, Tier I, Tier II cities New Delhi Gurugram Noida Jaipur Lucknow 1 Duty Paid Retail Outlet at Domestic Bhopal Terminals Ahmedabad Indore Nagpur Pune 2
Slide 25: Regulatory Headwinds of the Past…
Regulatory Headwinds of the Past… JAN - 16 NOV - 16 FEB - 18 Requirement of Pan JUN - 16 Demonetization of Increase in Cards for transactions Tax Collection at high value currency NOV - 17 Customs Duty on higher than Rs. 2 lakh Source requirement for GST rate revision Imported Watches all cash trans
Slide 26: thus validating our Business Strategy
thus validating our Business Strategy Exclusive New Store Digital Right Mix Brands Strategy ▪ Higher share of ▪ Targeting to open new ▪ Leverage on our Digital ▪ Targeting to have a Business from stores in Tier 2 cities platform to drive sales right mix of Brands at Exclusive Brands and customers al
Slide 27: Ethos is India's Preferred Destination for Luxury Watches…
Ethos is India’s Preferred Destination for Luxury Watches… Knowledge One-stop shop Mind Share Ethos has well trained Ethos’ access to Swiss Watch Ethos to be synonymous with Knowledgeable staff to ensure Brands will make it a ‘1 Stop Luxury watches retailing in highest customer satisfaction Shop’ fo
Slide 28: With an Asset Light Model…
With an Asset Light Model… Improve Return On Capital Employed Operating Leverage Playing Out Reduce Front-End Cost like Manpower and Rental expenses Maximize Reach Expand catchment area of offline store, leading to higher revenue Minimize Investment Focus on Online Presence & Rationalize Store Prese
Slide 29: and Continued Investments in Advertising…
and Continued Investments in Advertising… Print Ads in leading newspapers… … with ETHOS co-branding 29
Slide 30: and TRUST CAMPAIGN across channels…
and TRUST CAMPAIGN across channels… … to Educate consumers about Watches … to Create Awareness about unscrupulous activities … To Reinforce our “ETHOS” 30
Slide 31: to emerge as India's Largest Swiss Watch Retailer…
to emerge as India’s Largest Swiss Watch Retailer… The Largest & Preferred Retailer of Swiss Watches in India Forayed in Watch Retailing Started as a Watch Components Manufacturer 31
Slide 32: Offering the best Watch Brands under one roof
Offering the best Watch Brands under one roof The Brand Names mentioned are the property of their respective owners and are used here for identification purposes only 32
Slide 33: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : Ethos Ltd. CIN : U52300HP2007PLC030800 CIN : U74140MH2010PTC204285 Mr. C. Raja Sekhar Mr. Shogun Jain/ Ms. Payal Dave +91 7738377756 / +91 9819916314 rajasekhar@ethoswatches.com shogun.jain@sgapl.net / payal.dave@sgapl.